Judge OKs $600M Settlement for Residents Near Derailment

A federal judge on Wednesday approved a $600 million class-action settlement that Norfolk Southern railroad offered to everyone who lived within 20 miles of last year's disastrous derailment in East Palestine, Ohio. Judge Benita Pearson gave the deal final approval after a hearing in which the lawyers who negotiated it with the railroad argued that residents overwhelmingly supported it, attorneys for the residents and railroad spokesperson Heather Garcia told the AP. Roughly 55,000 claims were filed. Only 370 households and 47 businesses opted out.

Those who did object to the deal were vocal in their concerns that the settlement won't provide enough and that the deal was rushed through so quickly that they can't possibly know what the potential health impact from the derailment will be. They say it's hard to know all the risks, given the way test results have been reported by the EPA and the fact that the lawyers haven't disclosed everything they learned in their investigation. The judge's approval clears the way for payments to start going out quickly. The lawyers had previously said they hoped to get the first checks in the mail before the end of the year, per the AP.

Anyone who lived within two miles of the derailment can get up to $70,000 per household for property damage plus up to $25,000 per person for health problems. Payments drop off the farther people lived from the derailment down to as little as a few hundred dollars. When the train derailed on Feb. 3, 2023, tank cars full of hazardous chemicals ruptured and spilled their contents that caught fire just outside the small town. Three days later, officials decided to needlessly blow open five tank cars of vinyl chloride and burn the toxic plastic ingredient inside because of fear they would explode. Since the derailment, the railroad has offered residents and the community $108 million in assistance. As part of the settlement, aid residents received from the railroad will be deducted from their final payments. "We made a promise to make things right and this is just one piece of that commitment," the railroad said in a statement.

(More derailment stories.)